Edward Balls: On implementing the EU's Insurance Mediation Directive, the Government gave the Financial Services Authority responsibility for regulating the selling of all general insurance, save for a few exemptions allowed by the Directive. Sales of travel insurance sold along with a holiday or related travel were exempt from regulation, but given concerns with this market, the Government committed to review their decision in early 2007.
	In August 2006 the Treasury announced that it would conduct an investigation into the selling of travel insurance sold along with a holiday or related travel, thereby fulfilling the commitment made in 2003 to return to this area. A call for evidence was published in November 2006 to inform the review. This document set out the issues and put forward a number of options for the future regulation of the sector. The Treasury Committee also held a hearing into the scope of FSA regulation and has since produced a report calling for travel insurance sold along with a holiday to be regulated by the FSA (so long as it can be done in a proportionate way) and for the Government to work with the FSA and industry to produce policies that are better summarised in plain English. On the second of these recommendations HM Treasury is taking forward work with the Association of British Insurers.
	The Government believe that there is a clearweight of evidence pointing to a gap in consumers' understanding of travel insurance as a product and the cover it provides. In particular:
	although the travel insurance market is highly competitive, polices tend to be more complicated than a simple household or motor policy;
	as a secondary purchase, consumers are less likely to be focused on the details of their insurance policy than through a direct sale;
	the majority of consumers only really seem to consider price, not the details of the policy, in deciding which policy to purchase.
	Whilst all firms selling travel insurance could do more to explain to customers what the policy does and does not cover, there is clear evidence to suggestthat FSA regulated firms do a better job in terms of product disclosure and navigating the consumer through the sales procedure. Furthermore, customers of FSA firms have access to statutory redress and compensation mechanisms if things go wrong. Also, from a principled viewpoint, there is no case for the distribution of travel insurance through this channel to sit outside the regulatory framework when direct sales through insurers or brokers are within it.
	The Government take a risk-based approach to financial services regulation, by balancing the need for proper consumer protection with the need to minimise the regulatory burden on firms. After a careful consideration of the arguments and assessment of the balance in this case, the Government believe that it is in the public interest to extend FSA regulation to cover travel insurance sold alongside a holiday. Further details of this assessment are set out in the partial Regulatory Impact Assessment accompanying the proposal. There will now be a further period of consultation on the Government's preferred approach.
	HM Treasury is responsible for the overarching regulatory framework under the Financial Services and Markets Act 2000 and the scope of activities to be regulated by the FSA. Once a decision has been made on scope, the FSA is responsible for the details of the regulatory framework that firms must operate under.
	The Government are confident that the FSA operates within a framework that offers it the opportunity and flexibility to regulate in a risk-based and proportionate way. In line with Better Regulation principles the Government will also look to undertake a post implementation review after a reasonable period of time, three to four years after regulation comes into effect.
	HM Treasury is today publishing the document: "Travel Insurance Review - summary of responses and next steps", copies of which are available in the Vote Office and the Libraries of both Houses.

Gordon Brown: The Economic and Financial Affairs Council was held on 5 June in Luxembourg. The UK was represented by the Economic Secretary to the Treasury. The items discussed were as follows:
	Implementation of the Stability and Growth Pact: Excessive Deficit Procedures
	The Commission presented its proposal to abrogate the Excessive Deficit Procedures on Malta, Germany and Greece. Ministers agreed Conclusions supporting the abrogation of the EDPs.
	Convergence Reports by the Commission and the European Central Bank
	The Commission and the European Central Bank presented their Convergence Reports on Cyprus and Malta, which conclude that both countries have met the Maastricht criteria for joining the euro. Ministers welcomed the Commission and ECB's conclusions, and agreed a letter to be sent to Heads of State and Government at the European Council on 21-22 June. The final decision on whether both countries will join the euro as planned on 1 January 2008 will be taken at ECOFIN on 10 July.
	Quality of Public Finances
	Ministers were presented a report on the efficiency and effectiveness of public finances, focusing in particular on the need to improve the measurement of public sector output. The Council adopted Conclusions supporting the report.
	Tax
	(a) Combating Tax Fraud
	Ministers agreed Council Conclusions on a rangeof measures to combat tax fraud, particularly in the field of VAT. The Conclusions covered work on conventional measures and more radical approaches, including a Commission study into the impact of a possible wide reverse charge. The UK supports efforts to combat VAT fraud, particularly work to improve current arrangements such as exchange of information and mutual assistance.
	(b) VAT Package
	Ministers agreed a package of VAT measures, subject to work on some technical issues which are to be resolved before the end of the forthcoming Portuguese Presidency. The UK welcomes this important work to modernise and simplify the existing VAT rules, particularly for cross border supplies of services.
	(c) Common Consolidated Corporate Tax Base
	Ministers held an exchange of views on the Commission's technical work on a CCCTB. The UK does not believe that the competitiveness of the EU would be helped by a harmonised company tax base and remains sceptical about both the principles and the practicalities.
	(d) Code of Conduct on Business Taxation
	The Council took note of a report from the Code Group on its work under the German Presidency to combat harmful tax competition. The UK supports the work of the Group.
	(e) Joint Transfer Pricing Forum
	Ministers agreed Conclusions welcoming the work of the Joint Transfer Pricing Forum. The UK agrees that the report's recommendations represent best practice, and broadly follows these standards already.

Ian Pearson: I am pleased to announce that today the Government have launched a 15-week consultation on the detailed implementation proposals of the Carbon Reduction Commitment (CRC). Copies of the consultation document, updated partial RIA and the Government response to the previous consultation have been placed in the Libraries of both Houses.
	The CRC is a new mandatory cap-and-trade scheme which will place an emissions cap on up to 5,000 large business and public sector organisations responsible for around 14 million tonnes of carbon (MtC) emissions each year.
	The UK is committed to meeting ambitious carbon reduction targets and requires a robust package of policies to deliver emissions savings. This new scheme, announced in the Energy White Paper, together with the provisions of the Energy Performance of Buildings Directive will deliver emissions reductions of 1.2 MtC per year by 2020, from organisations such as large retailers and supermarkets, hotel chains, universities, hospitals and central Government Departments.
	The CRC is a scheme that we believe is, so far, unique for this type of organisation, designed to drive emissions reductions by providing organisations with financial incentives through emissions trading and combining this with reputational incentives through publishing performance in the form of a league table. CRC will auction 100 per cent. of allowances to participants and will recycle the revenue raised from the auction back to participants on the basis of their performance.
	This new consultation, ending on 9 October, seeks stakeholders' views on the detailed implementationand operational proposals of the CRC, with the aim of deciding how CRC can best be implemented. Government intend to bring CRC into force in 2010 beginning with a three-year introductory phase, with a fixed price sale of allowances, in which Government will not set a cap.

Barry Gardiner: My noble Friend the Minister of State for Sustainable Farming and Food has set the following targets for the Rural Payments Agency for 2007-08
	1. To have paid 75 per cent. by value of valid 2007 SPS scheme claims by 31 March 2008 and 90 per cent. by value of valid 2007 SPS scheme claims by 31 May 2008(1).
	2. To process and pay SPS claims within 2 per cent. materiality threshold and put in place other arrangements (with associated measures) to improve data quality.
	3. Process and pay at least 85 per cent. of valid claims, by volume, for all non-SPS schemes within ministerial guidelines and 99 per cent. within EU Commission deadlines or in their absence, 60 days of receipt of the claim.
	4. Record 98 per cent. of notifications of births, deaths and movements of cattle on the Cattle Tracing System within14 days of their receipt.
	5. Demonstrate a continually improving trend in customer satisfaction compared with the results of the February 2007 survey as measured for the year through our quarterly customer surveys and a reduction in customer complaints.
	6. Provide training and development to enhance leadership skills to all RPA's senior staff in order to maximise efficiency and deliver results.
	7. Demonstrate a material improvement in effective joint working with DEFRA and the DEFRA network across all relevant interfaces compared with the February 2007 survey, as measured by feedback from key partners.
	8. Successful delivery of improvements covered by DEFRA investment while maintaining performance across RPA's core business activities.
	Copies of the strategy and business plan will be placed in the Libraries of both Houses.
	(1 )This target is based on the assumption that no partial payments will be made. DEFRA Ministers will consider the issue in autumn 2007 and the target may be adjusted if necessary. The EU regulatory target (for the UK) of paying 96.154 per cent. of total fund value by 30 June 2008 is unchanged.

Margaret Hodge: The Companies Act 2006, which received Royal Assent on 8 November 2006, will bring major benefits to business by modernising and simplifying company law.
	I set out the full commencement timetable for the 2006 Act in my written statement of 28 February. I published, at the same time, a consultative document on questions related to secondary legislation which will need to be made under the Act, and on transitional and savings provisions.
	We received 65 responses to the consultation. These broadly supported the Government's approach, while making a number of helpful suggestions on points of detail. This statement outlines the Government's position on the main areas covered by the consultative document in the light of the responses. We intend to publish draft regulations and orders on the Departmental website at www.dti.gov.uk/bbf/co-act-2006/ before the summer recess in respect of most areas where regulations or orders will be required, to enable interested parties to comment on the details of the Government's approach to implementation in these areas. Draft regulations and orders on further areas will be published in the autumn.
	The responses confirmed that there continues to be strong support for the Government's "Think Small First" approach to company law reform. In particular, most respondents agreed that the model articles for private companies limited by shares should be designed with the needs of small, owner-managed businesses in mind. There was unanimous support for the proposal to have a single set of accounting and reporting regulations for small companies, so that small companies will have to look in only one place to establish what they are required to include in their accounts and reports. We intend to include in the small company regulations the requirements for small companies that choose to prepare group accounts so that all the requirements are in a single set of regulations, but with the group requirements clearly and separately identified.
	We consulted on a number of other accounting and reporting issues. Having now considered the responses, we intend:
	to draft a single set of accounting and reporting regulations for all companies other than small companies;
	to require medium sized, but not small companies, to disclose turnover in their abbreviated accounts;
	to retain the disclosure requirements in schedule 7 of the Companies Act 1985 in respect of employment of disabled persons and in respect of employee involvement in company matters;
	to require quoted companies to report more effectively on how pay across the company is taken into account in setting directors' remuneration.
	The 2006 Act makes important changes to the law in relation to directors' residential addresses, so that for every director the address on the public record will be a service address (whether it is his residential address or not). We intend to make supporting regulations in this area which will:
	restrict the extent to which credit reference agencies have access to directors' residential addresses;
	extend the procedures for removal of residential addresses from the existing record to those of former directors and company secretaries.
	The 2006 Act retained the requirements in the Companies Act 1985 Act for the annual return of companies with a share capital to include the addresses of all their shareholders. In the light of the responses, we have decided that this requirement should apply only to public companies that are traded on EU regulated markets in respect of shareholders who hold 5 per cent. or more of any class of shares at any time during the year in question. For other companies, the requirement will be changed so they no longer have to provide the addresses of any shareholders.
	There was broad support for our proposals in the area of share capital, including that of share capital reduction by limited and unlimited companies. We published draft regulations in this area in May, and will publish revised draft regulations in July in the light of the responses to the consultation.
	There was broad support for a single regulatory regime approach for overseas companies with a presence in the UK. We are currently considering the detail of such a regime and will make a further policy statement on this issue at a later stage.
	The consultative document also sought views on two areas closely related to our implementation of the 2006 Act: limited liability partnerships and implementation of Directive 2006/68/EC amending the Second Company Law Directive on capital maintenance and share capital.
	We are considering the responses in relation to limited liability partnerships carefully with a view to further consultation on specific proposals in autumn 2007 and consultation on draft regulations in early 2008.
	We intend to amend the Companies Act 1985 (for the period April to September 2008) and the 2006 Act (from October 2008) in respect of the safeguards for creditors in the case of a reduction in subscribed capital in Directive 2006/68/EC. We also intend to consult further in respect of the option to extend the facility for companies to hold "treasury shares".
	The consultation confirmed our general approach to transitional and saving provisions. In particular, we continue to believe that implementation should generally preserve existing decisions taken by the members and directors and agreements entered into by the company. In the light of the responses to the consultation, we intend to make a saving provisionin respect of the repeal of sections 151 to 158 ofthe Companies Act 1985 (financial assistance by companies for acquisition of their own shares). We also intend to provide a grace period until October 2010 for any company which did not have at least one director who was a natural person at the time when the 2006 Act received Royal Assent.
	We also consulted specifically on transitionals in respect of the provisions on derivative claims and proceedings in part 11 of the 2006 Act. In the light of the consultation responses, we have concluded that the new, clearer procedures should be used for all claims started on or after 1 October 2007; but the courts should ensure that the outcome of any claim based on acts or omissions by a director before 1 October 2007 will be what it would have been under the old, common law that applied at the time.
	The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 was laid before Parliament in draft on 25 June. The draft Order will commence some key parts of the 2006 Act, including provisions relating to part of the statutory statement of directors' general duties, derivative claims and proceedings, the business review, and resolutions and meetings.

Ian McCartney: I would like to make a statement on the future status of the Export Credits Guarantee Department (ECGD).
	I can now set out the financial frameworkunder which ECGD will undertake its functions from1 April 2008.
	On 1 July 2004, Official Report, column 22WS, the then Secretary of State, my right hon. Friend, the Member for Leicester, West (Ms Hewitt) told the House about the work she had put in place for ECGD to assess the suitability of its operations becoming a Government trading fund by operating a pilot of this status over a two-year period from April 2005. This period was subsequently extended to April 2008.
	Since then, there have been some important changes in the environment in which ECGD operates. In particular, against a background of changing UK industrial and trading patterns, buoyant private sector financial markets and benign global risk conditions, there has been a reduced demand for ECGD support and a reduction in its customer base. This has cast doubt about ECGD's long-term suitability to operate within a trading fund structure. Moreover, the experience of operating as a pilot trading fund, combined with other reforms in ECGD's operations, has shown that the benefits from establishing an ECGD trading fund can be delivered in a more appropriate and effective way.
	I am pleased to tell the House that the Chief Secretary and I have now agreed a new financial framework that is consistent with the objectives for ECGD set outin 2004.
	A number of key principles will underpin the new framework. First, there will be a cap on the risk exposure that ECGD can commit without express consent from HM Treasury, but with sufficient headroom to meet current and potential demand from exporters. Secondly, robust systems will continue to be used to assess and control the assumption of new risks. Thirdly, the premiums which ECGD charges on the transactions that it supports will continue to reflect the risk, including making a contribution to the cost of notional capital and to the maintenance of sufficient reserves, and to cover administration costs. Fourthly, ECGD's administration costs will in future be subject to departmental expenditure limits and the disciplines of Government spending reviews. The new framework will include revised financial objectives to enable Ministers to monitor the ongoing performance of ECGD's operations.
	Overall, this new financial framework will providea structure for managing ECGD's business that is appropriate to today's needs and which continues to balance the requirements of exporters against those of protecting the taxpayer and of achieving value for money.

Stephen Ladyman: My right hon. Friend the Secretary of State for Transport has today laid an Order before Parliament to enable the revision of interest rates on the debt owed by the Humber Bridge Board to the Secretary of State. The debt represents borrowing from Government for the construction of the Humber Bridge. The interest rate on the loan will be reduced from 7.75 per cent., currently payable on a portion of the debt, to 4.25 per cent. payable on the entire debt.
	The revised interest rate will apply from 1 April 2006 until 31 March 2011 at which time it will be reviewed. The rate of 4.25 per cent. was chosen as this was the National Loans Fund rate as at 3 April 2006. Over the five-year period, the reduction in interest payable amounts to £16.6 million, which the Humber Bridge Board can use to fund maintenance or repay capital debt. The reduction in interest payments will be reported in the Department for Transport's accounts each year over the five-year period.
	The rate has been revised to reflect more closely current interest rates and to allow the Humber Bridge Board to repay the debt within the agreed loan period (until 2038) without recourse to levying a precept on the local taxpayers of Humberside.
	The debt was last restructured in 1998 when an interest rate of 7.75 per cent. was set, although interest was not payable on a suspended part of the total debt. These arrangements were set out in the 1998 loan agreement and the Humber Bridge (Debts) Act 1998. In 2006 the Humber Bridge Board approached the Department for Transport advising that the debt would become unmanageable from 2007-08 at the 7.75 per cent. interest rate. This was because traffic growth had not met the levels predicted in 1998 and because of previously unforeseen major maintenance work required.
	A revised loan agreement between the Secretary of State and the Humber Bridge Board was signed on13 June 2007, replacing the 1998 loan agreement. It is dependent on the coming into force of the Humber Bridge (Debts) Order 2007. The Order is made under the Humber Bridge (Debts) Act 1996.
	The total debt owed by the Humber BridgeBoard to the Secretary of State was £334,437,000 asat 1 April 2006.

John Hutton: I have today published a Green Paper on the Government's commitment to take forward new proposals in joint birth registration.
	In December 2006 the Government published the White Paper "A new system of child maintenance". This paper set out the Government's proposal to make joint birth registration the default position for birth registration. It is the Government's ambition to significantly decrease the number of sole registrations from the current level of around 7 per cent. of births per year. This Green Paper sets out how we might achieve this ambition while providing robust exemptions for the protection of vulnerable mothers and children. We have always been clear that we would only legislate on this issue once we are sure such safeguards can be put in place and any legislation will have specific exceptions.
	Joint birth registration is a positive, early intervention initiative that could form part of a wider cross government programme to promote good parenting, fatherhood and parental responsibility. The point at which a birth is registered is also an idealtime for possibly vulnerable or at risk parents to be identified.
	Making joint birth registration the normal requirement, and doing more to promote and explain this requirement to parents, will publicly embed an expectation that the usual course of events is for both parents to acknowledge and be involved in the upbringing of their children.
	This could also lead to positive changes in the level of fathers paying maintenance for their child's upbringing or provide a starting point for single parents to claim child maintenance where there is no longer a relationship between the parents.
	The Government believe joint birth registration can make a significant contribution to child welfare and are committed to actively promoting it. This Green Paper sets out proposals to achieve this aim alongside a number of further non-legislative measures designedto maximise the number of joint registrations. The Government believe that these are critical to ensuring the success of our approach. The Green Paper asks whether these measures should be advanced as complementary to the legislative approach or developed solely within the current legislative framework.
	Copies of the Green Paper are available for Members from the Vote Office.